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Quanta Services Inc (NYSE:PWR)
Beneish M-Score
-2.96 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Quanta Services Inc has a M-score of -2.96 suggests that the company is not a manipulator.

PWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88   Max: -0.61
Current: -2.96

-3.88
-0.61

During the past 13 years, the highest Beneish M-Score of Quanta Services Inc was -0.61. The lowest was -3.88. And the median was -2.52.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Quanta Services Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9639+0.528 * 1.2205+0.404 * 0.9659+0.892 * 0.943+0.115 * 0.7469
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.942+4.679 * -0.0659-0.327 * 1.5345
=-2.96

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,493 Mil.
Revenue was 1713.737 + 1899.272 + 1939.438 + 1872.34 = $7,425 Mil.
Gross Profit was 203.313 + 223.039 + 235.215 + 227.505 = $889 Mil.
Total Current Assets was $2,248 Mil.
Total Assets was $5,296 Mil.
Property, Plant and Equipment(Net PPE) was $1,154 Mil.
Depreciation, Depletion and Amortization(DDA) was $199 Mil.
Selling, General & Admin. Expense(SGA) was $606 Mil.
Total Current Liabilities was $1,236 Mil.
Long-Term Debt was $404 Mil.
Net Income was 20.496 + -5.074 + 216.388 + 46.109 = $278 Mil.
Non Operating Income was 0.081 + -0.567 + -1.07 + -0.448 = $-2 Mil.
Cash Flow from Operations was 199.739 + 201.191 + 110.209 + 117.556 = $629 Mil.
Accounts Receivable was $1,643 Mil.
Revenue was 1861.386 + 2027.614 + 2145.958 + 1838.209 = $7,873 Mil.
Gross Profit was 237.906 + 311.628 + 336.903 + 264.209 = $1,151 Mil.
Total Current Assets was $2,388 Mil.
Total Assets was $6,141 Mil.
Property, Plant and Equipment(Net PPE) was $1,480 Mil.
Depreciation, Depletion and Amortization(DDA) was $182 Mil.
Selling, General & Admin. Expense(SGA) was $682 Mil.
Total Current Liabilities was $1,124 Mil.
Long-Term Debt was $115 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1493.255 / 7424.787) / (1642.675 / 7873.167)
=0.20111755 / 0.20864221
=0.9639

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(223.039 / 7873.167) / (203.313 / 7424.787)
=0.1461478 / 0.11974377
=1.2205

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2248.374 + 1153.884) / 5295.519) / (1 - (2387.64 + 1480.097) / 6140.834)
=0.35752133 / 0.37016096
=0.9659

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7424.787 / 7873.167
=0.943

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(182.374 / (182.374 + 1480.097)) / (198.667 / (198.667 + 1153.884))
=0.10970056 / 0.14688319
=0.7469

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(605.924 / 7424.787) / (682.051 / 7873.167)
=0.08160827 / 0.08662981
=0.942

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((404.058 + 1235.911) / 5295.519) / ((115.002 + 1124.31) / 6140.834)
=0.30968995 / 0.20181493
=1.5345

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(277.919 - -2.004 - 628.695) / 5295.519
=-0.0659

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Quanta Services Inc has a M-score of -2.96 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quanta Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.09911.06170.77640.9860.93991.06491.08060.98351.03980.9332
GMI 0.93210.91810.96120.9391.10831.20240.84740.97891.02991.288
AQI 0.80662.01840.94380.94431.04110.99950.86741.06611.08280.8276
SGI 1.14661.24641.42330.87781.18481.17621.28041.10181.20370.9645
DEPI 1.03041.33160.83411.18470.91981.03681.02561.11010.78820.986
SGAI 0.84811.05450.90391.15040.91770.93350.91071.04561.19730.8513
LVGI 1.00220.58280.60650.93690.76261.4421.03121.05091.04651.7086
TATA -0.0642-0.0244-0.0214-0.0523-0.0186-0.01810.0386-0.027-0.002-0.0585
M-score -2.64-1.78-2.33-2.89-2.30-2.37-2.10-2.53-2.30-2.97

Quanta Services Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.00061.09691.11681.11741.03220.91530.89960.87850.92410.9639
GMI 1.0291.03441.08271.09661.011.06011.06561.13051.24941.2205
AQI 1.06611.09241.08340.92241.08280.92071.09940.94830.82760.9659
SGI 1.0831.06661.10961.16851.21251.1951.13741.03320.9740.943
DEPI 1.22461.19041.16421.1460.76250.97820.74060.70810.92390.7469
SGAI 1.02991.13381.08881.14041.2071.04781.09220.98850.85740.942
LVGI 1.05091.05221.06551.10751.04651.19131.38271.61621.70861.5345
TATA -0.01390.0010.01730.01950.0081-0.0325-0.0522-0.0451-0.0585-0.0659
M-score -2.42-2.29-2.13-2.15-2.26-2.61-2.79-2.96-3.00-2.96
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